Oral Answer by Senior Minister of State for Law, Indranee Rajah SC, to Parliamentary Question on Pawnbrokers
7 Jul 2014 Posted in Parliamentary speeches and responses
Mrs Lina Chiam, Non-Constituency MP
To ask the Minister for Law (a) how many pawnshops have been established from 2011 to 2013; (b) what is the total amount disbursed by these pawnshops; and (c) how many defaulters could not redeem their items as they could not meet the repayment of their loans.
Madam Speaker, 43 new pawnshops were established from 2011 to 2013. Of these 43 pawnshops, 38 were set up by existing operators: 36 were from chains, while two were from businesses with two outlets. The remaining five were set up by new entrants into the industry. The industry grew from 163 pawnshops in 2010 to 204 in 2013.
The total amount of pawnbroking loans granted per year was $4.9 billion in 2011, $7.1 billion in 2012 and $5.5 billion in 2013. Such loans included loans which were refinanced using the same collateral.
Over the same period, around 95% of pledges were redeemed by pawners. Pawners may choose not to redeem their pledges for a variety of reasons. For instance, the pawner may simply wish to monetize an item that he owns. The Registry of Pawnbrokers does not track the reasons for the non-redemption of pledges.
Last updated on 07 Jul 2014